International Business Times reported that Brazilian miner Vale SA open to working with state controlled Petroleo Brasileiro SA towards a possible project cooperation on rare earths.

Ms Vania Somavilla Vale SA's human resources and corporate services director said that Petrobras uses rare earths and Vale has reserves of rare earths. Last week, Vale SA and Petrobras finalized an agreement that will pave the way for cooperation projects on fertilizers raw materials, oil, gas and biodiesel areas of which both Brazilian firms hold interests.

Ms Somavilla said that there are various areas; we're going to put everything on the table for discussion and work towards a common agenda. Both companies have not yet discussed any specific joint decision.

Vale SA is a Brazilian multinational diversified metals and mining corporation and is regarded as the second largest mining company in the world. It is the largest producer of iron ore, pellets and second largest of nickel. It also produces manganese, ferroalloys, copper, bauxite, potash, kaolin, alumina and aluminium.

In October 2011, the world got excited when the company announced the major discovery of deposits of rare earth minerals at its giant Salobo copper mine project at Carajas in Para state.

Scheduled to start supplying copper in 2012, Salobo is one of Vale SA's biggest copper projects. Expected yield in the first quarter is pegged at 100,000 tonnes copper. The rare earths discovery at Salobo has been likened to the rare earth potential of Australia's Olympic Dam multimineral deposit.

Mr Aloizio Mercadante Brazil's science and technology minister said that "Vale would bring big benefits to Brazil by entering into this rare earth market and I think it's an important thing for the west as a whole. It would also benefit Vale as a company."